Keeping More Dollars

Efficiency and careful planning help Obsidian Ridge Contracting deliver quality installations while maximizing profit on every job

Brian Cyrus keeps more of the dollars that pass through this business because of his highly detailed job planning. “Tools are cheap,” he says. “Leaving a jobsite to get a forgotten tool is expensive.”

The same goes for a missing pipefitting, piece of wire or even a broken tool. Cyrus, co-owner of Obsidian Ridge Contracting Inc., in Redmond, Ore., does not start a job until all the materials are stockpiled on the jobsite. Tight job planning is just one of his keys for success.

Named after a local geologic formation, Obsidian Ridge Contracting has been serving three counties within a 75-mile radius of Redmond since 2004. Starting the business with his wife, Rebecca (who still handles accounting and office functions), was a natural continuation for someone who has been involved in excavation enterprises since eighth grade.

Cyrus’ earlier excavation activities were in agriculture, but farming and timbering have nearly stopped in his area, about 100 miles east of Eugene. So he followed the opportunities into general excavation contracting. “Onsite system installation is both a logical addition to general excavating and a business necessity,” he says.

Right the first time

“Mobilizing for this work is expensive and time consuming,” Cyrus says. Once his crew is on site, they stay until the job is done right. To cut cost and increase productivity, he has custom-outfitted a Freightliner straight truck with a compressor and generator.

Carrying duplicates of the most commonly used tools and a similar depth of pipes, parts and components, he is ready for nearly any onsite surprise. “We deploy a better equipped, more versatile truck for less than the cost of a new high-end pickup without the equipment,” he says. The few times he has had to go for a part, he returns with at least two — the one he needs, and a spare for future jobs.

The relatively small size of his operation is an advantage. Traditionally, larger companies passed up small jobs that he could easily snap up. Larger companies would also subcontract site preparation work, site clean-up, or job completion to Cyrus so they could move on to larger jobs for which they were better suited. Smaller jobs seemed to seek him out and this was fine with him. But times are changing. He recently attended a pre-bid meeting where 29 excavators were present. The norm had been two to three bidders at such meetings.

Attention to the detail sets his crew apart as well. For example, when gluing pipe joints and fittings, they clean each pipe, then use the appropriate primer before applying the glue and making the connection. He has seen competitors called back to repair poorly prepared glue joints.

This meticulous approach to the work has gained the respect and support of his three-man crew. Matt Yoder, foreman, supervises when Cyrus is not on site and also operates equipment. Dale Piper and Steve Remilong are pipe fitters and installers who handle any assignment Cyrus or Yoder may send their way.

Versatility and cross training let Obsidian Ridge field a full compliment of skills with a small number of workers. “The crew has developed a satisfaction with and pride in their work,” Cyrus observes. “This is due in part to my approach to job planning.”

“We do not push to hurry a job, but we do not linger either. When I leave a site, I know that the next time I am there, it will be for a new job.”

Solutions through education

Cyrus understands that all soil is not well suited for onsite systems. In his service area, importing soil to make a site suitable is not an option. At training sessions, such as the NOWRA Installer Academy, he has learned about systems for marginal sites.

Informal discussion sessions at conferences are real eye-openers. There, he hears the practical aspects of emerging technologies and installers swap experience on how they overcome problem sites. “This pays off when we can make marginal lots buildable or lower the cost of conventional systems,” he says. “We become more valuable to our customers.”

Although new installations are down by 90 percent from two years ago, repairs and upgrades are on the increase. Cyrus finds people are willing to install innovative technologies to solve problems and avoid complete system replacements. “Without new technologies, it is challenging to keep busy,” he says. “If the old ways are not successful, they are counterproductive and quickly abandoned. When new products emerge, you must try them to see how they work, and how you can use them to do a better job.”

Of the failing systems he encounters, he believes the most common cause is overuse. “Most people cause their own problems,” he says. Often, he fixes the system by repairing plumbing issues, such as leaky faucets and toilets. Sometimes the owner has no idea his absorption area is under the lawn irrigation or sprinkler system; sometimes the owner knows that but does not understand the impact sprinklers can have.

Cyrus estimates that about 10 percent of the failures result from lack of pumping. Other problems he sees are crushed tanks and poor installation practices. Regardless of the problem or cause, sharing his knowledge and educating homeowners is a critical task to solve problems and avoid future problems. Good work on repair jobs also leads to future business.

Listening to the site

In the Redmond area, the local economy is now based on “importing wealth, since harvesting food and timber are essentially extinct,” Cyrus says. Recognizing and adjusting to these changes has brought new opportunities.

Even in the slow market, developers, builders and landowners seek his expertise to balance the competing demands placed on a property and its soil. A panoramic view of the nearby mountains nearly always influences the location and orientation of the house. Sometimes the best house site is also the best onsite system location. This is most often true on “legacy lots” (see sidebar), which may have been approved more than 15 years ago. These lots were subdivided when the siting and design standards were more relaxed.

Cyrus lets each site owner talk to him. Then, taking all things into consideration, he develops and presents a vision of the completed project to the landowner for consideration and negotiation. From these conversations, a site development plan emerges and the necessary permits are obtained from the county-based sanitarian who implements state-wide regulations.

When all is said and done, the best attributes of the site are used to the best advantage. The landowner winds up with an environmentally responsible project that compliments the site. As Cyrus summarizes it, “We make dirt look good.”

Always adapting

Cyrus acknowledges he is self-taught, having practiced the learn-by-doing approach as he grew his enterprise. By continually building on his skills, he has separated his business from others. He has also developed techniques that increase productivity and lower costs without sacrificing the quality for which he is known.

Investing in a laser leveling system with a price tag of more than $2,200 was not a decision quickly made. But when he realized that mounting the laser target or receiver on the backhoe’s boom freed-up the “rod-man” for other more productive tasks, it was an easy choice. “I have seen others not make this purchase because they do not understand the savings it will bring,” he says. Another benefit is much better excavation elevation control, which is essential when installing systems on-contour on complex slopes.

Obsidian Ridge Contracting uses EZflow aggregate substitute from Infiltrator Systems Inc., for faster installations. The product combines perforated pipe and plastic foam pellets in pre-assembled units that are easy to carry and position. Matching his backhoe bucket’s width to the EZflow bundles’ 12-inch width avoids excess site disruption. State regulations allow the substitution of a 12-inch trench with EZflow aggregate for a traditional 24-inch aggregate and perforated pipe trench.

Cyrus specifies filter fabric that is precut by the supplier to specific widths. This eliminates time-consuming field cutting so installations move more rapidly.

Flexible equipment

Supporting a wide range of installations and earth moving work requires adaptable and well-maintained equipment. Insight is also valuable for recognizing innovative ways to use the equipment on hand.

Cyrus has been selective in stocking his fleet. He has three John Deere machines: a 1984 510B and a 2002 310SG backhoe, and a 1999 550G LT dozer. For a lighter footprint and for their specialized capabilities, he uses a 2005 Terex HR3.7 mini-excavator and a 1999 Bobcat 753 skid-steer. His utility truck is built on a 2000 Freightliner FL70 chassis. When he encounters basalt, a very hard igneous rock, he can call on a hydraulic hammer to break it up.

The bottom line

Whatever equipment he may deploy, and no matter the site conditions, Cyrus takes a responsible approach to the job. “Many contractors give my business a bad name,” he says. He believes there is a significant difference between excavation contractors who also do onsite installations, and installers who also do general excavation.

For Obsidian Ridge Contracting, success comes from detailed planning, scheduling and attention to detail. These attributes are keys to maximizing productivity. Cyrus abhors wasted time, lost opportunities and do-overs. The fewer repairs he makes, the more dollars he can keep. That’s his bottom line.



Discussion

Comments on this site are submitted by users and are not endorsed by nor do they reflect the views or opinions of COLE Publishing, Inc. Comments are moderated before being posted.